Bankruptcy Protection and Stock Market Behavior in the US Airline Industry
This study examines the effects of bankruptcy protection on the stock market behavior of US airlines and their domestic rivals. We find that Chapter 11 airlines experience both statistically and economically significant adverse price changes at the time of filing for bankruptcy. During the close-to-3 years after filing, however, these airlines experience significantly positive price changes. Their rivals experience significantly positive price reactions both at the time of the filing and up to 3 years post-filing. The evidence is consistent with substantial improvement in the financial condition of the bankrupt airlines after the reorganization, and with rivals gaining from the failures of other airlines.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/oclc/31005945
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Supplemental Notes:
- Abstract reprinted with permission from Elsevier.
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Authors:
- Gong, Stephen X H
- Publication Date: 2007-7
Language
- English
Media Info
- Media Type: Print
- Features: Figures; References; Tables;
- Pagination: pp 213-220
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Serial:
- Journal of Air Transport Management
- Volume: 13
- Issue Number: 4
- Publisher: Elsevier
- ISSN: 0969-6997
- Serial URL: http://www.sciencedirect.com/science/journal/09696997
Subject/Index Terms
- TRT Terms: Airlines; Bankruptcy; Markets; Stocks
- Uncontrolled Terms: Event studies
- Subject Areas: Aviation; Finance;
Filing Info
- Accession Number: 01055180
- Record Type: Publication
- Files: TRIS
- Created Date: Aug 23 2007 10:40AM